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Bitcoin and Ethereum Market Analysis – 12.06.2022

Bitcoin dropped below the $28k level it had maintained couple of days ago. BTC is presently trading below $28k and experiencing severe volatility. The last 30 days of the 60-day cycle have been on the decline which give the entire market, a complete bearish outlook.

Bitcoin (BTC) is threatening to drop to its worst weekly close since December of 2020 and this recent decline may be the start of a larger degree of decline having lost all the key levels.

The risk right now, outweighs any reward potential. Don’t get fancy, don’t use ANY leverage, and be content with what spot allocations you have decided to take on.

There are periods where trade setups are hard to find. This is one of them. I have to resist any urge to go looking for one. Fewer actions are the best at the moment.

BTC daily chart shows a lackluster structure with a three-day losing streak and this has pushed price to multi-days’ lows. The daily trend model is down with high left translated cycle indicating a failed 4-year cycle.

No significant chance that, this 60-day cycle would bounce back to $32k having lost all the key levels. The mid-cycle right now is making new lows. Lots of downside potentials looming. We’re going deeper into a bear market unless the unexpected happens. Let’s hope, BTC/USDT pair may remain range-bound between $26k-$32k for some time to give any glimpse of counter trend move.

Avoid trading in a dominant bear market like this. Your strategy should be on a long term.

Chart 1: The chart shows dominant downward trend, still testing the lower lows at day-31 cycle low.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows a sustained downtrend structure, still below the lower range of the descending channel and trading much below key level support.

I’m not worried about the price shooting higher, leaving us behind but worried about the declining market and the price falling below the 60-day cycle low (ATL).

This is the time to reduce your allocation from Overweight to Underweight, because all the signs suggest, any stalling over the next week is likely move to the lower $20k’s.

Chart 2: shows a downtrend structure, below the lower range of the descending channel and trading much below the 10-week MA.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Ethereum lost 15% of its value over the past seven days, back to its 2018 pre-bull run values. This is not a healthy looking chart as it has lost all key support levels and in oversold territory.

On the flip side, ETH goes much lower than we often expect. So we need to watch out the downside move and plan towards it. We can always pick out position later on if the bull market is back on track.

Reclaiming the 10-day MA on the upside will be the first hurdle to cross, if Ethereum is to get back in the game any time soon.
On the short term, be patient, so that you don’t get hurt.

Chart 3: Still having complete bearish outlook like BTC and all the moving averages are trending low.
Source: bitcoin.live , ETHUSD Chart by TradingView

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service